Monthly Archives: April 2012

Re-bar prices in Raipur move up on high power tariff

Chhattisgarh power price hike results in increasing trading prices.   

Raipur Re-bar trading prices have jumped to Rs 37,800/MT
(Basic price) by an increase of Rs 300/MT as Chhattisgarh power prices increase
by around 20% from Rs 2.80/Unit to Rs 3.75/Unit w.e.f  5th May 12. Demand is weak and market
will not be able to absorb these prices which will be passed on to consumers and
producers will have to absorb the cost,”said sources.

Rourkela is also facing issues regarding labour shortage
due to summer heat and scarcity of water. TMT is being traded at Rs 39,000/MT
(Basic price), down by Rs 300/MT and demand is poor,” reported a manufacturer.  

Hyderabad TMT saw a correction of Rs 200/MT at Rs 38,500/MT
(Basic price) due to poor demand. There is no sales as sand prices have
increased and supply of sand and water is also low. Labour issues and two days
of power cut from 6:00am to 10pm along are also seen,”remarked a trader from
the city.

Ahmedabad Re-bar is offered at a fall of Rs 300/MT at Rs 39,800/MT
(Basic price) as demand is coming up in small quantities only on same reasons
as above. Further correction in the range of Rs 400/MT to Rs 500/MT is
anticipated,” said Mr Jayesh, a TMT manufacturer.         

The poor trading volumes might gain when  labour issues resolve and projects in
construction sector start.

            

 

Indonesian thermal coal prices remain stable ahead of holiday in China

Indonesian thermal coal prices were stable on Monday with no
reported trades ahead of holidays this week in China.

However, demand from China is expected to improve in July as
the approaching summer is expected to lead to lower hydroelectric power
generation and higher need for electricity, said market players from Indonesia.

Rains in Kalimantan continue, but it is not heavy enough to
impact production, source said.

Platts assessed the daily 90-day prices for FOB Kalimantan 5,900 kcal/kg GAR at
$90.25/MT, and 5,000 kcal/kg GAR at $70.50/MT, slightly changed from Thursday. 

 

Billet manufacturers in Chattisgarh raise offers amid high power tariffs

Billet offers move up as power prices due to power price rise in Chhattisgarh.

Raipur & Raigarh: “Billet offers in
Raipur have increased by Rs 600/MT at Rs 33,900/MT (Basic price, next day) and
by Rs 400/MT in Raigarh at Rs 33,400/MT on account of power price hike by around
20% from Rs 2.80/Unit to Rs 3.75/Unit w.e.f 
5th May 12 which increases cost of Billet making by Rs
1,000/MT. Demand is coming up as per requirement and prices might further improve
by Rs 200/MT to 300/MT,” a Billet trader from Chhattisgarh reported SteelMint.

Kolkata &
Durgapur
: “Buying is decent at unchanged prices as Billet is exported to
places like Sri Lanka and Bangladesh from Durgapur. If prices of Ingot and
Billet do not vary much, buyers prefer Billet as it is in a more purified form,” said a Durgapur based Billet manufacturer.           

Hyderabad:
“A correction of Rs 800/MT is seen today as trades are few in the finished
steel market. Billet is quoted at Rs 33,900/MT (Basic price, next day) and is
anticipated to show resistance at these levels,” remarked sources.

Mumbai & Goa:
“As downtrend in prices by Rs 300/MT in Mumbai quotes Billet at Rs 34,800/MT (Basic
price, next day)and Goa offers fall by Rs 400/MT at Rs 33,500/MT (Basic price,
next day),” said market players.

Billet trading prices is expected to stabilize at these
levels in the near term.                              

                 

 

Wire Rod trades in small quantities

Raipur: “Wire
Rod in Raipur is trading at Rs 100/MT more from previous trade at Rs 38,600/MT
(Basic price) as power prices in Chhattisgarh rise by around 20% from Rs
2.80/Unit to Rs 3.75/Unit w.e.f  5th
May 12.

Buyers are reluctant to take position at these levels and it
is unpredictable to say if markets would show further price change. Demand is
unexpected to come up in the next ten to fifteen days. Labour issues is also
anticipated to continue for some days due to summers,” reported a trader from
the city.    

 

Market looks to be trading at bottom and should revive from these

“With hike in power prices in Chattisgarh and hike in Iron Ore prices by NMDC, Sponge Iron and Ingot manufacturers will be hit most. Rising cost should support prices at these levels despite sluggish demand,” said market participants based in Raipur.

“UnavailabIility of Scrap in domestic market and rising Scrap prices in International market should support Ingot prices in North and West India. Markets are hovering at its bottom and its a good opportunity to take positions,” said a steel producer based in Mumbai.

 

“Higher power tariffs will impact Sponge Iron prices in Chhattisgarh” – Experts

Recent hike in power tariffs by Chhattisgarh State Electricity Board will impact Sponge Iron prices, say industry experts.

“Power prices have been raised by around 20% from Rs 2.80/Unit  to Rs 3.75/Unit which will be implemented from the 5th of May, 2012. Higher power charges will increase Ingot making cost by Rs 400/MT to 500/MT. 

With slow demand in finished steel, it looks difficult that this hike can be absorbed by the market. Effectively, Sponge Iron prices have to come down in near term,” said Mr Purshottam Agrawal, an Ingot manufacturer based in Raipur.

 

Lower Iron ore loading hits cargo throughput at Gangavaram port

Gangavaram Port, the country's deepest-draft port near
Visakhapatnam, has fallen short of its cargo throughput target owing primarily
to a slide in iron ore loadings last fiscal.

The port managed to notch up a cargo throughput of 14
million tonnes, as against 13.93 mt handled in the previous year.

The port has attributed the flat growth primarily to a dip
in iron ore traffic, which fell to 2.14 mt from 2.58 mt, accounting for a share
of about 15 per cent of its cargo basket.

Overall, India's iron ore exports sank by nearly 17 mt, or
30.39%, the major ports handled 60 mt of the commodity last year (87 mt).

However, Coal continues to be the mainstay of Gangavaram
port. It handled 9.95 mt of coal during the year (9.52 mt), accounting for over
70 per cent of its throughput, according to an official release.

 

Power prices in Chattisgarh move up by 20%

Much anticipated hike in power prices by Chattisgarh State Electricity Board  (CSEB)has been declared on Saturday.

It was reported that power prices has been revised to Rs 3.80/unit from Rs 2.75/Unit. Also demand charges has been reduced from 330 units to 250 units.

Net impact on power prices will be around 95 paise per unit said market sources.

This hike will be effective from 5th of May 2012.After declaration from CSEB, ingot manufacturers have stopped their offers and will wait for further directions.

 

Coking Coal prices set to rebound in July

Coking coal prices are likely to rebound in July this year
as demand from China and India are expected to improve.

“Rising Indian imports will have a positive impact on coking
coal,” said Natalie Robertson, an analyst at ANZ Banking Group Ltd. in
Melbourne.

Contracts of coking coal, a key ingredient used to make
steel, which peaked at $330 in the June quarter last year is expected to remain
in the range of $220 and $230/MT this year. However, it may rise higher if
recovery is seen in European economy.

According to Tapan Ray, executive director  for
mining at PricewaterhouseCoopers Ltd. in Mumbai, “demand for Coking Coal may
improve as India reduces interest rates  on loans, critical for
developing industrial projects and buying homes, cars and appliances.”

Supply constraints in Australia's Queensland state, caused
by rain and labor strikes at mines, will also boost prices.